The 12/31/2013 balance sheet of despot inc. included the following: common stock, 25 million shares at $20 par $500 million paid-in capital—excess of par 3,000 million retained earnings 980 million in january 2013, despot recorded a transaction with this journal entry: cash $150 million common stock $100 million paid-in capital—excess of par 50 million the transaction was for the: a. issue of 2 million shares of common stock at par value. b. issue of common stock for $150 million in cash. c. receipt of $20 per share for a new stock issue. d. all of the above are correct.

b. Issue of common stock for $150 million in cash

Explanation:

Since the journal entry would be

Cash A/c Dr $150 million

   To Common stock A/c                    $100 million

   To Paid-in capital - the excess of par   $50 million

(Being the common stock is issued)

In this transaction, the common stock is issued for cash of $150 million in which the common stock is $100 million and the remaining balance $50 million ($150 million - $100 million) would be credited to the paid-in capital account.

Hence, the correct option is b.

i believe the answer would have to be a dependable person

c.

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